Sad Stats

Both the state and the Obama administration have launched programs to stem foreclosures. The San Diego pace has slowed this year. Brian Yui, chief executive of HouseRebate.com, says, “There is going to be an onslaught of foreclosures. They have been delayed” because of the state and national programs. However, he notes that hedge funds are now buying pools of performing and nonperforming loans. “They are buying at a discount; a lot of them are in a position to write off part of the principal — they are paying 18 cents on the dollar.” The U.S. Treasury Department has unveiled a plan to buy as much as $1 trillion worth of troubled mortgages and related assets from banks and subsidize private sector firms, such as hedge funds and private equity groups, to pick up the toxic paper. Such actions “will help stem the tide of foreclosures,” says Yui.

But overall, don’t expect San Diego’s foreclosures, bankruptcies, and unlawful detainers to slow down much, if at all. The courts will be doing fine.